Latest news with #VikingCCS
Business News Wales
4 days ago
- Business
- Business News Wales
Comprehensive Spending Review 'Must Back a Homegrown Energy Future'
Offshore Energies UK (OEUK) is calling on the Chancellor to prioritise major UK energy projects at the Comprehensive Spending Review (CSR). Carbon Capture and Storage (CCS) is a key technology for decarbonising UK industry for which the CSR could unlock fresh business investment and jobs, the organisation says. The Humber's Viking and Northeast Scotland's Acorn projects have the potential to invest over £25 billion by 2035 with private sector capital, potentially creating over 30,000 jobs, it added. Acorn is the only project of its type in Scotland and is critical for futureproofing a variety of industrial, power and energy production companies to meet climate goals and prevent further deindustrialisation, says OEUK. Located in the Humber, the UK's most industrialised region and largest emitter of Co2, the Viking CCS project will create thousands of jobs in the region and play a vital role in supporting the UK to meet its target to capture 30 million tonnes of Co2 annually by 2030, says OEUK. OEUK has also urged government to deploy up to £7.5 billion in the Contracts for Difference (CFD) scheme to grow floating and fixed offshore wind over the next three auction rounds (AR7 – AR9) and help industry meet Clean Power 2030 targets. The UK Government is expected to open AR7 this summer. While the CSR addresses departmental spending and not revenue-raising plans, OEUK said a competitive fiscal regime for oil and gas remains essential to an ever-integrating industry, which is one of the UK's most important economic assets. Industry needs globally competitive tax and licensing regimes for oil and gas so the UK can lessen its reliance on imports and sustain jobs, supply chains and economic value as it scales up renewables, it said. The CSR should help the UK's offshore energy and other industrial sectors unlock economic growth and strengthen supply chains while developing world leading companies, said OEUK. Today, the UK offshore energy sector supports over 200,000 jobs in oil and gas alone and generated £25 billion in gross value add in 2023. Harnessing the potential of the UK's existing and emerging energy sector could increase this value much further, says OEUK. David Whitehouse, OEUK's CEO, said: 'These are critical times and our sector can help government lay a credible path to economic growth. This starts with support for homegrown energy. 'We must work together to unlock business investment across UK energy opportunities. This includes the build out of renewables alongside the responsible production of oil and gas. 'We are asking government to deploy the previously announced funding for carbon capture and storage and announce a clear funding envelope for Track-2 and beyond. 'This is needed so key projects like Acorn in Scotland and Humber-based Viking can go ahead, create jobs, help British industry decarbonise and importantly invest in Britain. 'In a country that's importing over 40% of its energy, we need more wind, hydrogen, oil and gas, and CCUS projects built here. This is investment the country needs for growth.' OEUK's CSR asks are: Unlock private sector investment in carbon storage and capture, offshore fixed bottom wind, offshore floating wind, and hydrogen. Provide a clear long term funding envelope as part of the Government's Clean Power 2030 goals to deliver the potential of these technologies. Provide efficiently resourced departments and efficient regulators to progress opportunities and activity at pace. Support UK specialist technology hubs to drive the technology and innovation required for a successful homegrown energy transition. Support expansion of the Skills Passport and cross sector skills demand planning to ensure that the UK has the skilled people to deliver on the offshore energy growth opportunity
Scotsman
21-05-2025
- Business
- Scotsman
Acorn: Scotland's carbon capture project in doubt as Labour minister to 'bid' Rachel Reeves for funds
A UK minister has admitted having to 'bid' for funding from the Chancellor to finally get Scotland's carbon capture project up and running. Sign up to our Politics newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... A Scottish Labour minister has raised fears the long-delayed Acorn carbon capture project could be further held up after admitting he is having to 'bid' with Chancellor Rachel Reeves to get the investment over the line. UK energy minister Michael Shanks stressed his department is having to lobby Ms Reeves to sign off funding for the crucial project, insisting it would be a 'significant sum of public money" for the Treasury to part with. Advertisement Hide Ad Advertisement Hide Ad A new dawn: Plans for carbon capture and storage are at an advanced phase for VPI, where the intention is to be the anchor emitter for the Viking CCS project. The Chancellor is poised to determine whether to finally fund the Acorn project at her spending review next month. The decision comes amid reports her team is mulling potential cuts after MPs warned the 'high risk' policy should be re-evaluated to ensure it is 'affordable for taxpayers and consumers'. The key details of the Acorn project The Acorn project, which would be based near Peterhead, has been in the pipeline for years and would allow fossil fuels to continue to be burnt without, in theory, releasing harmful carbon emissions. The project is seen as key to scaling up the low-carbon hydrogen sector in Scotland and future plans for Grangemouth, but the technology has not yet been demonstrated at commercial scale. Advertisement Hide Ad Advertisement Hide Ad Chancellor of the Exchequer Rachel Reeves and Energy Security and Net Zero Secretary Ed Miliband. PIC: Justin Tallis/PA Wire Speaking in front of Holyrood's economy and fair work committee on Wednesday, Mr Shanks insisted the UK government was 'supportive of the Acorn project' and refuted claims Ms Reeves was 'going cold' on funding. He said: 'The Secretary for State has been really clear in Parliament that we see it as a crucial part of how we deliver our decarbonisation journey for Scottish industry and energy. It's a really important investment proposition.' Energy Minister Michael Shanks with Cerulean Winds' alliance partners on a tour of the Port of Ardersier near Inverness hearing about the Aspen floating windfarm which will create over 1,000 jobs. | Contributed The minister, however, admitted his department is having to lobby the Chancellor to approve funding for the project to get up and running. He said: 'It is obviously a significant sum of public money and it's right that it's for the spending review to make that decision. Our sense of it is that it is a serious part of our spending review bid and it will be considered alongside everything else in the next few weeks and announced to Parliament in the usual way.' Advertisement Hide Ad Advertisement Hide Ad Minister pressed over Grangemouth Mr Shanks was pressed by SNP MSP for Falkirk East Michelle Thomson over Petroineos' closure of the Grangemouth oil refinery and who was responsible. READ MORE: North Sea leaders and energy workers urge Keir Starmer to scrap oil and gas windfall tax Ms Thomson said: 'I can tell you both categorically both my anger and my significant disappointment at what has happened. And all of us in politics need to play our part in taking accountability and responsibility for this situation - for the people that work there and the people in the town and for Scotland. 'I feel I've done everything I can, but I take responsibility and accountability for that because I'm an elected politician. Do you?' Advertisement Hide Ad Advertisement Hide Ad Mr Shanks claimed the previous Conservative UK government had refused past attempts from the SNP Scottish Government for Project Willow, the blueprint for future industries to be developed at Grangemouth, to be drawn up years ago. He also told MSPs that Grangemouth had been allocated more time and staff from UK ministers and officials in finding solutions to the refinery closing and future plans 'than any other issue that we have faced as a government in the last nine months'. Minister on regrets Mr Shanks pointed to UK energy secretary Ed Miliband 'having more meetings on this than anything else' and himself 'meeting almost every single week on this question'. Advertisement Hide Ad Advertisement Hide Ad He said: 'We could not turn around what has been a long-standing issue at that refinery in nine months. 'It's not a political answer about passing responsibility. It's a reality that years ago, we knew that the situation at Grangemouth was precarious and the previous government did nothing about that.
